DHAKA, April 21 India's Hero Motor Corp Limited
, maker of the Hero motorcycle, will invest $40 million
in a new manufacturing plant in Bangladesh in its first overseas
joint venture, Pawan Munjal, the company's managing director and
chief executive said.
The company signed an agreement on Monday with local
automobile company Nitol Niloy Group to start work on the
project which will be Hero's first manufacturing plant outside
Hero will hold 55 percent in the new joint venture while
Nitol will hold 45 percent.
Pawan said that once operational by the second quarter of
financial year 2015-16, the plant would have an annual capacity
of 150,000 units. He said the aim was for around a 20 percent
share of the market in Bangladesh.
Abdul Matlub Ahmad, chairman of Nitol Niloy Group said the
joint venture aimed to provide technologically-advanced and
fuel-efficient motorcycles for customers in Bangladesh. He told
Reuters that the plant would create up to 200,000 (direct and
indirect) job opportunities in the country.
Matlub said that Bangladesh's annual motorcycle sales might
hit around 1.4 million units in the near future from around
500,000 units at present.
Hero motorcycles account for 50 percent of the total
motorcycle market in India, Matlub said.
(Reporting By Serajul Quadir. Editing by Jane Merriman)